UK exploration firm, Tullow Oil, has discovered oil traces in Kerio Valley, raising hopes for boosting Kenya’s oil production potential. The firm reported seeing oil traces within a depth of 700 meters, while drilling at Cheptuket 1 Well, All Africa reported.
The company said that the strong oil shores showed the presence of an active petroleum system with significant generation. Tullow Oil previously stated that Kenya’s oil could be commercially extracted at a break-even cost of about $25 per barrel, which is lower than the current global price of $30.
Equities analysts at Barcleays cited by The Telegraph said the result could signal that the Kerio Valley is the second prolific basin to have been discovered in Kenya, and vindicated the company’s focus on the region over the last two years.
Currently, Kenya’s recoverable reserves are at an estimated 600m barrels level and prospects show that they could top the 1b barrels bar.
In December 2015, the London-based oil explorer in Africa announced that the potential size of oil resources discovered in northern Kenya’s Etom-2 well increased. At the time, the company had already found about 2.3b barrels of resources in East Africa, with discoveries in Kenya and Uganda.